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| Section | Objectives |
|---|---|
| Life Insurance Products | - Permanent life insurance
|
| Policy Provisions and Riders | - Life insurance policy clauses
|
| Insurance Fundamentals | - Insurance concepts
|
| State Regulation (Maryland Insurance Law) | - Ethics and conduct
|
1. In surrendering a life insurance contract for its cash value, the total of premiums paid less the total of any dividends received in cash or used to offset premiums is:
A) The loan value
B) The gross proceeds
C) The cost basis
D) The cash value
2. A universal life insurance policy can be described most accurately as a combination of:
A) A term insurance policy and an annuity
B) An endowment policy and an interest-sensitive deposit fund
C) A flexible premium deposit fund and a monthly renewable term insurance policy
D) A mutual fund and a whole life insurance policy
3. Who normally receives dividends in a stock insurance company?
A) Only members of the board of directors
B) Producers
C) Shareholders
D) Beneficiaries
4. Which of the following reinforces the rule that ambiguities in insurance contracts should be interpreted in favor of the policyholder?
A) Retrocession
B) Reasonable expectations
C) Retention
D) Representation
5. A producer is prohibited from:
A) Selling insurance to family members
B) Splitting commissions with a licensed nonresident producer who has jointly sold a policy
C) Countersigning a policy sold in Maryland
D) Allowing an applicant to sign a blank or incomplete application
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: B | Question # 5 Answer: D |
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MarylandAccident and Health or Sickness Producer Series 20-24 Exam
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